Oil price and the Alaska economy (Anchorage, Valdez: how much, to buy, utilities)

[RayinAK]

Originally Posted by warptman

NPR finally added Alaska in their daily high gas prices. Anchorage turned up highest gas prices in the country this morning.

The funny thing is that the price of fuel is quite low in Anchorage compared to what it is where you live.

[warptman]

Off system is forever going to be higher than the road system.

[Marty Van Diest]

Originally Posted by Rance

Well...she's my wife now...which makes her my ex-girlfriend!



Gas prices are plummeting (well in most places). It looks as though it could fall below $0.00 per gallon by March of next year! What does this mean for life in the US you ask? Well...

New gas powered home appliances will be unveiled including toothbrushes, doorbells, hammers.
The state would introduce a G-Waste program to help you dispose of all that old gas lying around your garage.
The Federal government would impose a "Fun Tax" on gas in an attempt to keep rowdy teens from filling public fountains and lighting them on fire.
In order to one-up the opening of the Bejing Summer Games, London would fill and ignite the Thames so the whole world could experience the awesome power of The Olympic Flamegasm.
Al Gore's head explodes.
Zombie Saddam put back in power to help raise crude oil prices.
Fire-eaters spiral into fire-bingers.
A career in the arsonic arts is not as much a dent in the ole' pocketbook.
Everyone's a huffer!
Premium gasoline will still hover around the 2.9 - 4.9 cents per gallon price range, enraging BMW and Citroen owners.
Convenience stores will make up for the loss of income by raising the price of Super Big Gulps to $4.59.
Firework construction will shift to liquid propellants.
Most energy drinks will include at least a little gasoline.
People will drive huge, luxurious vehicles able to seat 5 or more adults, even when they are just travelling alone.

Rance...I used your chart on my blog. I'm assuming it's yours. I didn't give you credit for it because I don't know your name. I'm assuming you made the chart. If you want me to take it down I will. It's on this post here. I got a kick out of it.

[warptman]

Pssst Marty, his name is.....Rance.

[Marty Van Diest]

Thank you warpt...

[Moose Whisperer]

Originally Posted by RayinAK

The money "they gave away" was our money. Such moneys, in this case "Energy Rebate" was a good thing wherever fuels (heating, gasoline, etc.) were the most expensive at the time. My wife and I used ours to fill a 500-gallon heating fuel tank, and I am certain that a lot of families in the interior and in the bush also used their money on things they needed. The bottom line is that this rebate went right back into the AK economy..

Actually, this is why I disagreed with the "rebate". Because they distributed it as taxable income, in essence they only gave about two thirds of it to you (depending on tax brackets of course), one third was given to Uncle Sam to waste. This was revenue generate by our non-renewable resources. Had it been used for something in-state such as a real capital improvement project to benefit all of us, you are correct, it would have gone right back into the AK economy. As it stands though, on April 15, 1/3 to 1/4 is going into the federal coffers, probably to be given away as a bailout to some undeserving (and un-Alaskan) group.

Originally Posted by RayinAK

The way I see it, if the legislature keeps the money they will waste it on pay raises, and on pork. For example, building "nature" trails, bicycle trails around Los Anchorage, parks, and such. But if the give me my portion, I put it to good use instead.

That however goes back to the issue of whether they should have collected the money in the first place. But that's a whole other argument !

[InfectedMushroom]

Come on 50 cent a gallon gas!!! Hey I can wish can't I? It has felt much better not putting 60+ dollars to fill up, and not have it last a week. And it to think it only took a complete meltdown of the US economy for it to happen, why didn't we think of that earlier!?

[RayinAK]

Originally Posted by InfectedMushroom

Come on 50 cent a gallon gas!!! Hey I can wish can't I? It has felt much better not putting 60+ dollars to fill up, and not have it last a week. And it to think it only took a complete meltdown of the US economy for it to happen, why didn't we think of that earlier!?

It's still around $2.48 (regular unleaded) in Fairbanks.
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Moose Whisperer: We can't get away from federal taxes, as you can see with the Permanent Fund. Even my tool allowance rebate at work is federally taxed.

[Jonotastic]

Originally Posted by RayinAK

As most of us already know, the Alaska's economy depends on the price of oil. For the past few years, Alaska has made a lot of money, and this is reflected in the budget surplus. But when the price of oil (per barrel) drops below $80.00, then Alaska has to dip into its savings. Oil has dropped to under $40.00 per barrel lately, and if it continues this way the budget will go from black to red within two or three years. Luckily the governor and legislature decided to put money away instead of spending it.

This is a good article about how important oil is to Alaska:
newsminer.com • Oil prices drop to $35.61 as Alaska prepares to update revenue forecast

The lower the better ...remember McCain and Palin's message..."Country First, not State First" lol.

[RayinAK]

However, this one offers more details on the price of oil and the difference it makes on projected budgets:
newsminer.com • Volatile oil prices pinch Alaska budget